BCDA appeals SC decision

MANILA, Philippines - The government stands to lose P12 billion if the Bases Conversion and Development Authority is compelled to subject the 33.1-hectare Bonifacio South Pointe property in Taguig City to a Swiss challenge instead of a competitive bidding.

According to BCDA president and chief executive officer Arnel P. Casanova “the President’s legal and economic teams are convinced that a competitive bidding would yield the best deal for government and that a competitive bidding would be more transparent.

BCDA’s statement is in response to the Supreme Court’s decision directing the agency to subject the Bonifacio Global City property to competitive challenge.

In its motion for reconsideration, the BCDA pointed to the disposition of the Food Terminal Inc. in 2012. It said the government would have  earned less than P13 billion instead of the P23.9 billion it actually earned had FTI been subjected to a Swiss challenge.

 “The losses emanating from a bidding with a floor pegged at more than P12 billion below current market values will be much more,” the BCDA said.

The latest transaction at Bonifacio Global City which is near Bonifacio South Pointe was at P500,000 per square meter when the Government Service Insurance System sold a 1,600-square meter property last month.

The current zonal value of the Bonifacio South Pointe property is at P100,000 per square meter and Cuervo appraised its present market value conservatively at P78,000 per square meter. SM Land Inc.’s offer at P38,500 per square meter is barely half current market value.

 “Clearly, this is grossly disadvantageous to the government.  We are asking the Court en banc to reconsider. Not only does it have legal basis, but it is also the better option for reasons of public policy, “ Casanova said.

The SC decision stemmed from the petition lodged by SM Land seeking the nullification of the BCDA’s notice of termination of the Swiss challenge for the Bonifacio South property.

In its decision, the SC noted  the successful  negotiations signed by both BCDA and SM Land last April 5, 2010 in which BCDA had committed to subject SM Land’s proposal to competitive challenge and to initiate the proceedings for solicitation of competitive proposals  from other interested parties.